High oil prices to drive biofuels investment

High world oil prices would drive investment in ethanol and biodiesel more effectively than any compulsory production target, Australian Federal Agriculture Minister Tony Burke said. Burke said continued high oil prices were expected to spur more ethanol and biodiesel production in Australia. However, “Investment is still problematic because of the uncertainty around the Australian Government policies on biofuels, which raises risks for investment,” he said. State Agriculture Minister Kim Chance is taking to Cabinet a proposal for 5% of all transport fuel used in Western Australia to come from biofuels by 2011. (July 9, 2008)